There is something interesting and peculiar going on in the world of digital currency payment processors right now. While there is a large market for this kind of services – especially the ones related to both fiat currency and Bitcoin – some companies are struggling to stay afloat. Judging by the information we received via email earlier today, it looks like Vogogo will be shutting down their invoicing platform shortly.
What Is Going On With Vogogo? – UPDATE
Vogogo CEO Geoff Gordon set the record straight:
“Vogogo is not shutting down any services. As part of a recent customer service “house cleaning” process we made a decision to terminated several very small clients that were simply not utilizing our services in a material way but were often tying up our support resources. (Most of these clients were running on an old legacy platform of ours but some were not). Over the years we had accumulated enough small clients where 75%+ of our customer support resources were going towards clients that were charged less than $50/mnth. Not an effective way to operate.”
Most people active in the world of digital currency will have come across the name Vogogo sooner or later. Throughout the years, this company has been able to strike multiple strategic partnerships with prominent Bitcoin companies, including BitPay, ChangeTip, and Genesis Global Trading.
One of the main reasons why various Bitcoin companies have partnered with Vogogo is because the company offers a wide variety of services, including identity verification, AML and CTF compliance reporting, and much more. Moreover, the company is also doing a good job at mitigating fraudulent transactions, which is important in the world of digital currency.
Small and large corporations could use the Vogogo Invoicing service, which makes it a lot easier to send out invoices and keep track of payments in an easy-to-use interface. Unfortunately, it looks like that service will be coming to an end, as no new signups are approved, and the company sent out an email to its users earlier today.
In this particular email, Vogogo mentions how they will be closing down the invoicing platform shortly. No further details were provided at the time of publication, as there does not seem to be an indication as to any problems that have arisen over the past few months. In fact, the startup has raised a fair amount of money during 2014 – US$8.5m – and another US$12.5m in 2015.
Whether or not this deal is part of an ongoing restructuring, a potential merger, or simply financial problems, remains unknown at this point. Over on Reddit, users are claiming their entire payment processing system will shut down, yet there is no credible information to back up these claims [at the time of publication].
We will keep an eye on the situation and update this article further as more information becomes available.
Source: Vogogo Email
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